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"Selective" is positive, "elitist" is negative. I wouldn't call someone who graduated from an Ivy or a US Service Academy as being from an elitist institution--simply a selective one. After all, their selection criteria is fairly concrete--good grades, good activities, good recommendations. Our selection criteria sometimes goes beyond those three--is she cute? Is she of "good character"? Is she of the proper race, size, or social class>? Sometimes Greks are seen as "elitist" when the word "selective" should be used, but sometimes the shoe fits.
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